Payday loan broker: How are they different from direct lenders?

If you are considering a payday loan (or any other type of loan) you will usually come across 2 main options: A payday loan broker or a lender.

What is the difference between a payday loan broker and payday loan lender?

Essentially, a broker is a person or a company who has a relationship with several service providers.

In the case of a payday or short-term loan broker (such as ourselves), they will have several loan providers who they can put you in contact with.

A loan provider is simply the financial institution that will actually loan the money to you.

A broker will never actually loan you any money

The purpose of a broker is twofold:

To help you find the best possible deal to save you both time and (often) money.

To provide a valuable service to lenders by introducing them to the types of customer they want to work with.

Is a payday loan broker more expensive?

First of all, a good broker should never charge you any fees.

Most brokers have commercial relationships with loan providers that pay them a commission.

In many cases, brokers are able to negotiate more attractive deals as a result.

Payday loan providers have to be transparent with their fees, charges and APR. It would be very difficult for a broker to be more expensive unless they charge you an upfront fee for their services. Our lenders refuse to work with fee-charging brokers. It is considered bad practice and a bad type of service.

If you are looking for a good broker to locate the right loan for your circumstances, we recommend that you look closely at the terms and conditions. Make sure you are not charged any extra fees that could increase the cost of your borrowing. They need to be extra clear in saying you will not incur a fee at any point and that they only work with lenders. In any case, do not provide your debit card details until you are 100% sure it is required for loan repayment.

Because Cash lady will never charge you any fees for our service, you can always be 100% confident that your loan application is completely free.

What are the benefits of a payday loan broker?

There are many benefits to using a broker and one of the most valuable benefits is the saving of time.

Imagine a scenario where brokers did not exist.

If you wanted to secure the best possible deal for yourself, you would have to research the lenders and consider the following:

Once you have conducted this research, you would then have to make an application.

Each lender will have a different set of lending criteria. Their decision to approve your payday loan will change based on their credit policies.

An important part of the approval process is performing a credit check. The lender will look at your credit history and use this information to help them make a decision.

Having a credit check can have an impact on your credit score. You may find that having a credit check might prevent you from being accepted by another lender.

It is therefore very important that you give yourself the best possible chance of first-time success

At Cash Lady, we help our customers by providing a one-stop-shop where you simply complete one payday loan application form, to apply to our trusted panel of payday loan providers.

This way you will have the confidence of knowing your application is only seen by lenders – each strictly vetted by our team. You could save hours of your precious time by getting a quick decision.

What are the benefits of going directly to a lender?

Often people have a fear in their mind about brokers. They want to make sure they are in reputable hands and that they will not pay a fee to apply. A mainstream lender is might perhaps provide the opportunity to discuss your situation.

Because most applications are now done online, you may find that speaking to somebody could mean waiting some time. Unfortunately, the likely outcome is that you would need to make an official application to reach a decision.

If you are considering speaking to a lender directly, we suggest that you take a look at the lenders we work. You will then ensure you speak to vetted, industry leaders.

What are the disadvantages of a payday loan broker

One of the disadvantages of a being a payday loan broker is that we do not lend the money ourselves. This means that the ultimate decision to approve your loan is out of our hands.

We found that it doesn’t really change a lot for our customers who is providing the funds. It is sometimes frustrating for us when we want to help people but can’t.

What are the disadvantages of going directly to a direct lender

Going directly to a lender could mean that you are not getting the best deal for yourself.

The world of loans and finance can often appear complicated and it can become confusing if you do not understand the terminology.

Payday and short-term loans carry a higher APR over shorter periods. Especially when compared to traditional long-term loans. The difference in APR can make a big difference to the amount you have to repay.

Terms and conditions can vary with different repayment structures to consider.

As mentioned before, if you fail an application with one lender, it could impact the decision making for another lender.

Choosing the best possible payday lender for your circumstances is important.

Important things to consider

If you are looking for a payday or short-term loan, you need to carefully consider the cost of the loan. You need to make sure that you understand exactly what your commitments look like.

Miss a payment or make a late payment, you will almost certainly incur a penalty fee which will not exceed £15. Most of our lenders do offer some flexibility in these cases.

When time is of the essence, then a payday loan broker will almost always be the safest option.

Because we understand the lending criteria for each of our lenders, it enables us to check and match. This will be based on the information you give us. We match your application with the lenders most suited to your needs. Only then do we send your application for a quick online evaluation.

When you make a successful application, you will be sent to the website of the lender. There you will be able to complete your application and sign the loan agreement.

Don’t worry, the information you submitted will be carried across so you don’t have to go through the process all over again!

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CashLady.com is a credit brokerage website owned and operated by Money Gap Limited. We are not a lender and do not provide credit to consumers. If you make an application through this site it will be shown to a selection of UK based lending partners for careful consideration. Applicants must be 18 years or over and approval is subject to status. We will never charge a fee for our service, but do receive a commission from lenders following successful introductions originating from this website. Any information we provide is for the strict purpose of illustrating the lending process only and does not constitute any form or financial or legal advice.